Tips from Experts at the Top

RICHARD NIXON'S critics often charge that the President is remote from the real world, surrounded by overly protective aides who screen out notes of dissent. To determine just what the outside experts are saying about the economy--and what should be done--TIME correspondents last week interviewed corporate chiefs, trade union leaders and economists. A sampling of opinions: LEONARD WOODCOCK, president of the United Auto Workers. "The best thing that can happen to reverse the inflation is to spur the economy. For that, we should move up the tax cuts already authorized for 1972 and 1973, making them immediately applicable. As a last resort, we could lower the value of the dollar, perhaps by permitting it to float until it found its proper relationship to other currencies. That would reduce the prices of U.S. exports in the world market and drive up import prices." GARDNER ACKLEY, former chairman (1964-68) of the President's Council of Economic Advisers. "The Administration could easily put another $8 billion to $10 billion a year into the economy. What we need are liberalized unemployment insurance benefits, accelerated tax reductions effective now, instead of in 1972 or 1973, and vigorous federal programs combating unemployment and inflation." LEE A. IACOCCA, president of Ford Motor Co. "The country cannot hope to have a sustained economic recovery without a strong increase in investment. It is disquieting that the outlook for capital spending is so weak. We would urge Congress to restore the investment tax credit permanently. Changes that promote investment are in the best interests of everyone." CHARLES ("TEX") THORNTON, chairman of Litton Industries. "One of the most important things that the Administration can do is to provide business with an investment tax credit. Not only will that create jobs now, but it will improve productivity and help the U.S. maintain an edge over foreign competition. Too many of our production facilities are not modern enough and desperately need updating."

LYNN TOWNSEND, chairman of Chrysler Corp. "Nixon may say he has inflation and unemployment under control, but I have seen no figures to indicate that he has solved either problem. I am against wage and price controls, but we cannot let this situation go on forever. The economy has the people scared. If we do not begin to see evidence of a decrease in inflation soon, the Government will have to take drastic action." RAYMOND SAULNIER, former chairman of the CEA (1956-61). "I'm afraid that wage inflation has gone so far now that it requires much more direct intervention by Government. I'm not talking about freezes or mandatory controls. But I am talking about a much more direct, determined and explicit Government intervention. I come to this conclusion sadly and reluctantly." A.W. CLAUSEN, president of the Bank of America. "The President should speak out more forcefully and specifically on inflationary settlements and price increases. The Administration is failing with its laissez faire policy."

OTTO ECKSTEIN, former member of the CEA (1964-66). "The absence of an incomes policy now is absolutely indefensible. A new office should be set up, headed by a single presidential appointee and staffed by men of the President's choosing. They would draft and implement a firm set of principles on wages and prices. They would have a set of standards to distinguish between so-called 'catchup increases' and new inflationary increases." KERMIT GORDON, former member of the CEA (1961-62). "I am opposed to mandatory controls, but I do feel that wage-price guideposts are a necessary part of any well-balanced economic policy designed to deal with inflation." JOHN P. LEWIS, former member of the CEA (1963-64). "I would like to see a wage-price review board. It would have more bite than the wage-price guideposts. In addition, we should eliminate import quotas on such things as Japanese steel. This will force American producers to hold the line against wage and price hikes."

NEIL JACOBY, former member of the CEA (1953-55). "I'm for a review board. It should tie wage hikes to increases in productivity, and should have the power to force compulsory arbitration." PAUL SAMUELSON, M.I.T. economist. "I'm in favor of a much more activist incomes policy than President Nixon has been willing to take, but I stop short of mandatory price controls. I'm for jawboning, for moral suasion. To hold down prices, I would let in more imports, and I would use Government procurement policies."

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